Indonesia Ranks Lowest in Asia-Pacific for Access to Innovative Medicines: IPMG’s Call for Action

Indonesia is facing a significant health challenge as it ranks the lowest among Asia-Pacific countries in providing access to innovative medicines, with only 9% availability. This limited access to new and effective treatments has broader implications, not only affecting public health but also threatening Indonesia's economic growth due to the potential loss in productivity and increasing healthcare costs. According to estimates, the economic loss from restricted access to advanced medicines could reach up to USD 130 billion (over IDR 2,000 trillion) annually.

In response to this urgent issue, the International Pharmaceutical Manufacturers Group (IPMG) launched a strategic manifesto to address the barriers to healthcare access. The manifesto outlines a roadmap for transforming Indonesia’s healthcare system through sustainable and effective partnerships between the government and private health sector stakeholders.

IPMG’s Chairman, Dr. Ait-Allah Mejri, emphasized that access to innovative medicines should be treated as both a health priority and an economic necessity. “A cohesive strategy can help Indonesia reduce productivity loss due to untreated diseases and stimulate growth across various economic sectors,” he stated during a recent discussion in Jakarta. The IPMG manifesto highlights critical steps towards establishing a healthcare system that not only improves treatment availability but also strengthens Indonesia’s competitiveness in the Asia-Pacific region.

A key component of IPMG’s proposal is forming a dedicated team to work on a national strategy focused on the availability of innovative drugs and vaccines. This team, envisioned as a collaboration among public and private health sector stakeholders, would be responsible for developing and implementing policies that ensure timely access to essential medicines. The proposed strategy aims to create a resilient healthcare infrastructure that can support medical innovation and improve access for all Indonesians.

Challenges with BPJS Health Procurement System

IPMG also raised concerns about the current drug procurement and negotiation system within Indonesia’s National Health Insurance (BPJS Kesehatan). The group advocated for a revised model that prioritizes transparency, efficiency, and long-term sustainability in negotiations. Improving BPJS’s approach to medicine procurement could enhance the system’s ability to provide a broader range of treatments while managing costs effectively.

Strengthening the Health Technology Assessment (HTA) framework was another critical point in the manifesto. By incorporating industry input into HTA processes and investing in HTA capacity-building initiatives, Indonesia can improve the sustainability of its healthcare sector. A well-funded HTA can also ensure that new and effective treatments are introduced more rapidly and at affordable prices.

Economic and Social Impact of Delayed Access

The slow introduction of new treatments has led to an outflow of Indonesian patients seeking care abroad, particularly for conditions that require advanced medications not yet available through BPJS. On average, it takes around 71 months from the global launch of a new medicine before it becomes accessible to BPJS beneficiaries. This delay has resulted in an estimated 2 million Indonesians seeking medical treatment abroad every year, costing Indonesia approximately USD 11.5 billion (IDR 180 trillion) in foreign exchange losses.

By addressing these barriers, IPMG believes that Indonesia could retain more of its healthcare spending within the country and support national productivity. “We believe that a well-funded healthcare sector could reduce the outflow of foreign exchange due to overseas treatments, enhance productivity, and create a self-sustaining healthcare system,” noted Idham Hamzah, an IPMG board member and head of the Industry Policy Task Force.

Perspective from Patients and Advocates

Patient advocates echo IPMG’s concerns, especially those representing patients with serious conditions such as cancer. Aryanthi Baramuli, Chair of the Cancer Information Support Center (CISC), pointed out that the lengthy wait times for treatment approvals force many patients to pay out of pocket for expensive drugs unavailable through BPJS. She urged the government to prioritize expanding insurance coverage to include life-saving medicines.

In summary, IPMG hopes its manifesto will spark meaningful discussions and catalyze change within Indonesia’s healthcare sector. With the country’s new administration in place, Dr. Ait-Allah Mejri expressed optimism that increased investment and strategic partnerships could position Indonesia as a regional health center while boosting its economic potential.